21 August, Wednesday: In light of recent incidents of people losing their life savings on online betting apps, the government has come up with a bill to curb financial harm, such as scams and money laundering. The Promotion and Regulation of Online Gaming Bill is set to be amended into law, waiting to be cleared by the President after it was passed by the upper house of the Parliament on Thursday.
Headed by Central IT Minister Ashwini Vaishnaw, the bill is mainly focused on stopping any operation and advertisement of online betting apps while boosting E-sports and casual gaming.
According to Reuters, Minister Ashwini Vaishnaw said in the Parliament, “It is the duty of the government and the parliament to take strict action against social evils, which keep erupting time and again” on Thursday.
The bill mentioned the prohibition of online betting games involving real money, such as game-related transactions and even the advertising of them, citing their harmful psychological impact, besides causing financial distress.
Passing the bill, possible job loss, and shutdown of online-based gaming services have become a major concern for the executives. As a reaction to this, Indian gaming groups are discussing with their legal teams to approach the Supreme Court to present the lack of consultation in preparation of the bill, said two industry sources to Reuters, with insiders regarding the matter.
Involvement of top sports personalities, Bollywood actors, and social media influencers in advertisements helped online gaming sites like Dream11, Poker Bazzi, and Winzo to gain traction in the mass market while gaining interest of investors. Startup betting app Dream11 reigns in the Indian market with a valuation of $8 billion.
The bill also raised concern regarding online gaming app’s ability to become a communication channel for money laundering, financing terrorism by terrorist organizations. While many online gaming platforms require real money while running operations from offshore locations making it hard for the authority to figure out jurisdictions because of cross-border concerns. The bill also states anyone who offers to facilitate such money games once the law comes into effect could face up to three years of jail time and the fine can reach till ₹1 crore.
